Morgan Stanley considers the company’s portfolio, prized for its diversity and growth, is manageable for investors only if it comes with transparency.
Rapid growth over the last three years has also meant rapid growth in structural complexity, and the broker would become incrementally cautious about valuation if company disclosures cease or change.
Morgan Stanley points out distributions are the only comparable consensus metric and, in terms of free cash flow, are currently partially funded by capital releases.
The broker notes first quarter traffic results are due on October 10. Equal-weight rating and Cautious industry view maintained. Target is $15.28.
Target price is $15.28.Current Price is $14.91. Difference: $0.37 – (brackets indicate current price is over target). If TCL meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).